According to analysts, continued US dollar sell-off has always pulled bitcoin down. But this correlation of bitcoin with the DYX will not last forever, says Acheson Acheson, former head of research at CoinDesk and Genesis.
Bitcoin and DYX, a very complex relationship
For Robert Kiyosaki, we should expect a “giant crash” of the US dollar. A situation that is favorable to a Bull Run Bitcion, according to the author of Rich Father Poor Father.
But the author of the “Crypto is Macro Now” newsletter, Acheson Acheson, sees things differently. CoinDesk shared his analysis of the bitcoin correlation with the dollar index recently.
First, it should be noted that the negative correlation between BTC and DYX had eroded a few weeks ago. During this period, bitcoin struggled to consolidate due to a continued strong greenback sell-off.
Meanwhile, the dollar index fell 2.26% last week. It even dipped below 100.00, its lowest level since April 2022. Strangely enough, bitcoin had stabilized between $30,000 and $32,000.
Does this confirm Robert Kiyosaki’s thesis?
According to Acheson Acheson:
” The negative relationship between DYX and BTC is likely to recover, as fluctuations in the dollar index influence global liquidity conditions, which in turn affect valuations of risky assets, including cryptocurrencies “.
Besides, it seems difficult to predict the end of this correlation between BTC and DXY anytime soon. Its place in the global economic chessboard seems solid despite recent dedollarization efforts.
” The BTC-DXY relationship will, however, be hard to shake for a long time. It’s not just because the US Dollar is the denominator of the top-rated pair for the crypto-asset (and when the denominator loses value, the ratio increases, and consequentially all similar things) – it’s also becausea weaker dollar boosts global liquidity giving US dollar debt holders around the world more room to breathe says Mr. Acheson in his newsletter yesterday.
An unbeatable dollar?
That India trades with Saudi Arabia with its own currency, the dollar remains a reserve currency on a global scale. He always knew how to maintain its hegemony in trade, debt and international bank loans.
Thus, when the dollar gains in value, borrowers are confronted with high fees, and consequently, make sure to expose themselves as little as possible to risky assets. In the event of a sharp rise, the opposite effect occurs.
” Dollar decline looks solid “, continues Mr. Acheson, on the basis of disinflation in the United States. A situation that will delay the mass adoption of bitcoin?
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